French startup Carbon has scrapped its plans for a 5 GW integrated solar manufacturing facility in Fos-sur-Mer. The project, previously labeled a Project of Major National Interest, failed due to a lack of investor guarantees and regulatory uncertainty within the EU.
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Another gigafactory dream hits the wall of reality. 5 GW is a massive target for a startup. Did they ever actually secure the power interconnection agreements for a site that size, or was the project just a slide deck and a prayer?
The mention of insufficient regulatory visibility is the key here. If the EU cannot provide a clear preference mechanism for locally made panels, investors will not risk billions when they can just import cheaper modules from China.
Carbon tried to bring in Longi to save the project, but it still collapsed. This shows that even with a major Chinese partner, the financial risks of building a full solar chain in Europe are currently too high for most.
It is the same story with industrial heat and hydrogen. We talk about national interest, but the payback periods do not work without massive, guaranteed subsidies. No one wants to be the first to build a factory that might be obsolete in three years.
